Gov’t to bid out its largest hydroelectric plant Agence France-Presse
November 14, 2006
THE Philippines will auction off its largest hydroelectric power plant in December with seven prospective bidders showing interest, a government privatization agency said Tuesday.
Seven investor groups, consisting of foreign and local companies, attended a recent pre-bid conference for the 360-megawatt Magat hydroelectric plant in the northern province of Isabela, the Power Sector Assets and Liabilities Management Corp. (PSALM) said in a statement.
The Magat power plant, commissioned in 1983 will be the second hydroelectric power facility to be bid out by PSALM this year.
This follows the successful sale last September of the 112-megawatt Pantabangan-Masiway hydroelectric power complex in the northern province of Nueva Ecija for $129 million.
The possible cost of the Magat power plant was not stated but the rule of thumb in the local power industry is that power plants will sell for about a million dollars per megwatt capacity, industry sources said.
The identities of the seven prospective bidders cannot be revealed due to confidentiality agreements, PSALM spokeswomen said.
